IRS Unveils 2027 Tax Brackets and Higher Standard Deductions

Annual inflation adjustments for tax year 2027

November 6, 2026 · 10:35 p.m. Central / 11:35 p.m. Eastern

The Internal Revenue Service published its annual cost-of-living adjustments for tax year 2027 on Friday, raising the standard deduction for millions of American households and lifting federal income tax bracket thresholds by approximately 3.2 percent.

The comprehensive guidance, issued under Revenue Procedure 2026-35, applies to income earned during the 2027 calendar year and reported on federal tax returns filed in early 2028, according to the Internal Revenue Service, the Journal of Accountancy and Tax Foundation.

By law, the IRS adjusts dozens of statutory thresholds annually using the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). The annual recalibration is designed to prevent "bracket creep"—a phenomenon where inflation and wage increases push taxpayers into higher marginal tax brackets without a corresponding gain in real purchasing power.

Standard deduction rises across all filing statuses

The standard deduction—the flat dollar amount that reduces taxable income for taxpayers who do not itemize deductions—will increase notably for the 2027 tax year:

• Married Couples Filing Jointly: Increases to $33,200, up $1,000 from $32,200 in 2026.
• Single Taxpayers & Married Filing Separately: Increases to $16,600, up $500 from $16,100 in 2026.
• Heads of Household: Increases to $24,925, up $775 from $24,150 in 2026.

Taxpayers age 65 or older and those who are legally blind remain entitled to an additional standard deduction amount, which rises to $1,600 for married individuals and $2,050 for unmarried single filers.

New marginal rate income thresholds

The statutory individual income tax rates remain unchanged at seven brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. However, the income cutoffs defining each bracket have expanded upward.

For Single Filers in 2027:

• 10%: Incomes up to $12,800
• 12%: Over $12,800 to $52,025
• 22%: Over $52,025 to $109,125
• 24%: Over $109,125 to $208,325
• 32%: Over $208,325 to $264,550
• 35%: Over $264,550 to $661,375
• 37%: Incomes exceeding $661,375

For Married Couples Filing Jointly in 2027:

• 10%: Incomes up to $25,600
• 12%: Over $25,600 to $104,050
• 22%: Over $104,050 to $218,250
• 24%: Over $218,250 to $416,650
• 32%: Over $416,650 to $529,100
• 35%: Over $529,100 to $793,650
• 37%: Incomes exceeding $793,650

Child tax credit, AMT, and estate exclusions

In addition to deductions and tax brackets, Revenue Procedure 2026-35 details upward adjustments across several major tax code provisions:

Child Tax Credit: The maximum credit climbs to $2,300 per qualifying child (up from $2,200), with the refundable additional child tax credit limit increasing to $1,800.

Alternative Minimum Tax (AMT): The AMT exemption amount rises to $93,000 for single taxpayers and begins phasing out at $643,550. For married couples filing jointly, the exemption rises to $144,700, phasing out at $1,287,100.

Estate & Gift Tax: The basic lifetime exclusion amount for estates of decedents passing away in 2027 increases to $15.48 million, up from $15.0 million in 2026. The annual gift tax exclusion rises to $20,000 per recipient, allowing individuals to gift up to $20,000 ($40,000 for married couples electing gift-splitting) without filing a gift tax return.

Tax policy analysis on X

Financial journalists and tax policy analysts discussed the 2027 IRS inflation figures and take-home pay implications on X.

Read IRS News’ release on X

Open the original post if the embed does not load.

Key dates for the 2027 tax cycle

1. November 6, 2026 The IRS issues Revenue Procedure 2026-35 establishing official 2027 tax parameters.
2. January 1, 2027 Employers update payroll systems with revised 2027 withholding tables reflecting the increased brackets and standard deduction.
3. December 31, 2027 Conclusion of the 2027 tax year for individual calendar-year taxpayers.
4. Early 2028 Tax filing season begins; taxpayers file 2027 federal returns utilizing these thresholds.

Sources and visual credits

Internal Revenue Service · Journal of Accountancy · Tax Foundation · Kiplinger · Forbes · Axios · IRS News on X.

Hero backdrop and thumbnail: conceptual editorial illustration · not an authentic IRS form or document scan.